Dividend Growth Strategies For Younger Investors [View article]
Tuliptown, thanks for the comment! There are a variety of techniques that you can look at for valuing banks. I look at return on equity as well as return on invested capital, which you can use to benchmark across different banks. I also look at top line revenue growth when evaluating international banks, just to see level of growth. Default ratios/write offs are also a very important measure for consumer lending. Integrator
Dividend Growth Strategies For Younger Investors [View article]
Thanks for the feedback Mo Money 79. I recently added MCD to my portfolio as well. I hold the bulk of my positions in a taxable account as I plan to live off my dividend income well before retirement age, if things work out! Integrator
Dividend Growth Strategies For Younger Investors [View article]
Hilo,
Thanks for the comment and feedback. You raise an interesting point. I don't believe that a 27% rate of growth is sustainable over 20-30 years also, but I believe Visa can and will significantly ramp up its dividend over the next 4-5 years as the thrust of its international market efforts are completed. This is a business that requires minimal capital reinvestment (the last few years have only seen $350M or so invested in the business for capex), and it has a very low payout ratio , which I estimate to be around 25% net of various one time charges. In my view, the dividend could be normalized at 3x where it is today (ie yield of almost 2.5%), with sustainable growth of 10%p.a for a number of years. That is my thesis on the stock, though I realize at its current yield levels, it may not be attractive for many. Here is a link to an SA article I wrote on Visa which makes the case for why I believe it to be a compelling DGI stock. http://seekingalpha.co... Integrator
Dividend Growth Strategies For Younger Investors [View article]
Thanks for the feedback MadMan. Appreciate the feedback. I started DGI about 10 years ago when I was in my mid 20's. I am now in my mid 30's and still persist with this as a strategy given the benefits its had for me over the last 10 years.
Dividend Growth Strategies For Younger Investors [View article]
Ry The Kid, I just checked your recent articles and didn't notice any article of yours recently directed at dividend growth strategies for younger investors? The only thing I saw was a portfolio article. I think the thrust of my article suggests that younger investors should consider lower yielding and higher growth stocks and selective international dividend stocks which may be exposed to better economic growth. Visa, Mastercard, McDonalds are stocks that I currently own, which is why they are referenced in the article.
Dividend Growth Strategies For Younger Investors [View article]
James, Very good advice. I have been able to see some of the benefits of DGI in just 10 years of following the strategy. I can only imagine the effects after 20 years or so of DGI. Integrator
Dividend Growth Strategies For Younger Investors [View article]
Goings, thanks for the feedback! My preference when I started with Dividend Growth Investing was to fund my best choices to a certain level (ie 10% of my portfolio) before I started invested in other picks. I went with a minimum of 10 positions. I also reinvested aggressively for the first few years via DRIPS which really allowed me to maximize my dividend income. I generally avoid any non paying dividend issues for the purpose of DGI. I am happy to hold some more modest yielding stocks if I expect they will have room to significantly ramp their dividends over time. While the majority of my wealth is tied up in dividend growth stocks, I do have a small percentage of my portfolio set aside for growth stocks (rather than gambling!) where I feel they early stage and potentially disruptive positions, but these positions are generally revenue and income generating, have established moats and are riding some kind of "tailwind" (ie offline to online, cash to credit etc). Integrator
Dividend Growth Strategies For Younger Investors [View article]
Tomlos, I entered V around $105 in early 2012. I see good value in the stock at around the $125 mark, but would be prepared to buy up through $140. I am very bullish on the company long term and would be prepared to hold indefinitely pending periodic review of performance.
Dividend Growth Strategies For Younger Investors [View article]
Invest4Dividends,
Absolutely! I view DGI as applicable to both old or young. I think young folks should be more willing to look at stocks with strong business models that may pay lower yields (like Visa), and provide higher dividend growth. Older folks closer to retirement who want to maximize their retirement income may not have the same luxury given a more immediate need for income. Integrator
Dividend Growth Strategies For Younger Investors [View article]
Thanks David. I had a chance to read your article, which was a great read. Unfortunately there are also many younger folks who are caught up in trying to turn a quick profit with the latest penny stock than to take the slower, more patient approach to generate income and wealth. Glad to hear from other folks with a likeminded approach to building income and wealth.
Dividend Growth Strategies For Younger Investors [View article]
Thanks for the feedback Water Buffalo! I think more young investors should feel comfortable branching out into lower current yielding stocks with faster dividend growth. As you point out, V is riding a secular trend which has a ways to run, and can be expected to generate significant dividend income into the future. Integrator
The Need For Dividend Diversification [View article]
Thanks Jay. QSII is one that I just picked up not so long ago. I feel that they are in a nice growth niche should continue to experience solid earnings and dividend growth.
Dividend Growth Strategies For Younger Investors [View article]
There are a variety of techniques that you can look at for valuing banks. I look at return on equity as well as return on invested capital, which you can use to benchmark across different banks. I also look at top line revenue growth when evaluating international banks, just to see level of growth. Default ratios/write offs are also a very important measure for consumer lending.
Integrator
Dividend Growth Strategies For Younger Investors [View article]
Integrator
Dividend Growth Strategies For Younger Investors [View article]
Thanks for the comment and feedback. You raise an interesting point. I don't believe that a 27% rate of growth is sustainable over 20-30 years also, but I believe Visa can and will significantly ramp up its dividend over the next 4-5 years as the thrust of its international market efforts are completed. This is a business that requires minimal capital reinvestment (the last few years have only seen $350M or so invested in the business for capex), and it has a very low payout ratio , which I estimate to be around 25% net of various one time charges. In my view, the dividend could be normalized at 3x where it is today (ie yield of almost 2.5%), with sustainable growth of 10%p.a for a number of years. That is my thesis on the stock, though I realize at its current yield levels, it may not be attractive for many.
Here is a link to an SA article I wrote on Visa which makes the case for why I believe it to be a compelling DGI stock.
http://seekingalpha.co...
Integrator
Dividend Growth Strategies For Younger Investors [View article]
Dividend Growth Strategies For Younger Investors [View article]
Dividend Growth Strategies For Younger Investors [View article]
Dividend Growth Strategies For Younger Investors [View article]
Very good advice. I have been able to see some of the benefits of DGI in just 10 years of following the strategy. I can only imagine the effects after 20 years or so of DGI.
Integrator
Dividend Growth Strategies For Younger Investors [View article]
My preference when I started with Dividend Growth Investing was to fund my best choices to a certain level (ie 10% of my portfolio) before I started invested in other picks. I went with a minimum of 10 positions. I also reinvested aggressively for the first few years via DRIPS which really allowed me to maximize my dividend income. I generally avoid any non paying dividend issues for the purpose of DGI. I am happy to hold some more modest yielding stocks if I expect they will have room to significantly ramp their dividends over time. While the majority of my wealth is tied up in dividend growth stocks, I do have a small percentage of my portfolio set aside for growth stocks (rather than gambling!) where I feel they early stage and potentially disruptive positions, but these positions are generally revenue and income generating, have established moats and are riding some kind of "tailwind" (ie offline to online, cash to credit etc).
Integrator
Dividend Growth Strategies For Younger Investors [View article]
Dividend Growth Strategies For Younger Investors [View article]
Absolutely! I view DGI as applicable to both old or young. I think young folks should be more willing to look at stocks with strong business models that may pay lower yields (like Visa), and provide higher dividend growth. Older folks closer to retirement who want to maximize their retirement income may not have the same luxury given a more immediate need for income.
Integrator
Dividend Growth Strategies For Younger Investors [View article]
Dividend Growth Strategies For Younger Investors [View article]
I think more young investors should feel comfortable branching out into lower current yielding stocks with faster dividend growth. As you point out, V is riding a secular trend which has a ways to run, and can be expected to generate significant dividend income into the future.
Integrator
The Need For Dividend Diversification [View article]
The Need For Dividend Diversification [View article]
Building A Better Retirement With Dividend Income [View article]